import substitution
Quick Summary
Import substitution industrialization (ISI) is an economic strategy aimed at fostering domestic production of goods that were previously imported. This approach was primarily adopted by developing nations, particularly in Latin America, from the 1930s through the 1960s.1
The core idea behind ISI was to overcome the international division of labor, where less-developed countries primarily exported raw materials and imported manufactured goods. Proponents argued that this system perpetuated poverty. ISI strategies typically involved protecting "infant industries" through high tariffs and other trade barriers, alongside incentives to import capital and technology.1
While ISI aimed for a phased industrial expansion, it often led to drawbacks such as slow employment growth, agricultural decline, and increased inequality. Critics also pointed to an over-reliance on transnational corporations and a failure to promote equitable development.1
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ArgentinaEconomy of Argentina…’70s pursued a strategy of import substitution designed to transform Argentina into a country self-sufficient in industry as well as agriculture. This was accomplished mainly by imposing high tariffs on imports and thereby sheltering Argentine textile, leather, and home-appliance manufacturers from foreign competition. The government’s encouragement of industrial growth, however,…
Read More…’70s pursued a strategy of import substitution designed to transform Argentina into a country self-sufficient in industry as well as agriculture. This was accomplished mainly by imposing high tariffs on imports and thereby sheltering Argentine textile, leather, and home-appliance manufacturers from foreign competition. The government’s encouragement of industrial growth, however,…
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TanzaniaManufacturing…its agricultural goods and on import substitution—that is, the manufacture (often from imported materials and parts) of products that were once purchased from abroad. The principal industries are food processing, textiles, brewing, and cigarette production. Production of cement, clothing, footwear, tires, batteries, and bottles takes place as well. There are…
Read More…its agricultural goods and on import substitution—that is, the manufacture (often from imported materials and parts) of products that were once purchased from abroad. The principal industries are food processing, textiles, brewing, and cigarette production. Production of cement, clothing, footwear, tires, batteries, and bottles takes place as well. There are…
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